The Principality of Callao is a very large, socially progressive nation, remarkable for its barren, inhospitable landscape, compulsory military service, and absence of drug laws. The hard-working, democratic population of 353 million Callaoans hold their civil and political rights very dear, although the wealthy and those in business tend to be viewed with suspicion.

The tiny, liberal government juggles the competing demands of Welfare, Education, and Defense. Citizens pay a flat income tax of 7.3%.

The strong Callaoan economy, worth 19.0 trillion sols a year, is driven almost entirely by the private sector, which is fairly diversified and led by the Information Technology industry, with major contributions from Book Publishing, Retail, and Furniture Restoration. Average income is 53,716 sols, with the richest citizens earning 5.9 times as much as the poorest.

Crime is moderate, probably because of the absence of a police force. Callao's national animal is the condor, which can occasionally be seen dodging aircraft in the nation's cities.

Callao is ranked 253,831^st in the world and 7^th in Peru for Largest Manufacturing Sector, scoring 3,582.63 on the Gooback-Jerbs Productivity Index.